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Item 1. Financial Statements

2025-07-29 compared with 2025-04-23 · 288 added, 174 removed, 757 unchanged (38% of the section changed)

2 unchanged sentences

Condensed Consolidated Statements of Operations

(Dollars in millions, except per share data) Three months ended March 31

(Dollars in millions, except per share data) Six months ended June 30 Three months ended June 30

2025 2024 2025 2024

Sales of products $ 35,269 $ 26,792 $ 19,122 $ 13,524

4 unchanged sentences

Total costs and expenses ( 37,393 ) ( 30,330 ) ( 20,314 ) ( 15,637 )

4,852 3,105 2,435 1,229

Income from operating investments, net 28 74 25 7

1 unchanged sentence

Research and development expense, net ( 1,754 ) ( 1,822 ) ( 910 ) ( 954 )

Loss on dispositions, net ( 3 )

Gain on dispositions, net 64 5 67 5

Earnings/(loss) from operations 285 ( 1,176 ) ( 176 ) ( 1,090 )

1 unchanged sentence

Interest and debt expense ( 1,418 ) ( 1,242 ) ( 710 ) ( 673 )

Earnings/(loss) before income taxes 76 ( 378 )

Loss before income taxes ( 485 ) ( 1,893 ) ( 561 ) ( 1,515 )

Income tax (expense)/benefit ( 158 ) 99 ( 51 ) 76

9 unchanged sentences

Condensed Consolidated Statements of Comprehensive Income

(Dollars in millions) Three months ended March 31

(Dollars in millions) Six months ended June 30 Three months ended June 30

2025 2024 2025 2024

Net loss ($ 643 ) ($ 1,794 ) ($ 612 ) ($ 1,439 )

3 unchanged sentences

Unrealized gains/(losses) arising during period, net of tax of ($ 59 ), $ 22 , ($ 39 ) and $ 3

206 ( 76 ) 138 ( 11 )

Reclassification adjustment for losses included in net loss, net of tax of ($ 8 ), ($ 8 ), ($ 3 ) and ($ 6 )

Total unrealized gain/(loss) on derivative instruments, net of tax

234 ( 50 ) 148 8

Defined benefit pension plans and other postretirement benefits:

Net actuarial loss arising during the period, net of tax of $ 0 and $ 17

Net actuarial (loss)/gain arising during the period, net of tax of $ 0 , $ 17 , $ 0 and $ 0

( 2 ) ( 18 ) ( 2 ) 1

Amortization of actuarial losses included in net periodic benefit cost, net of tax of ($ 17 ), ($ 20 ), ($ 20 ) and ($ 8 )

4 unchanged sentences

Other comprehensive income/(loss), net of tax

Comprehensive income/(loss) 124 ( 462 )

376 ( 87 ) 221 20

Comprehensive loss ( 267 ) ( 1,881 ) ( 391 ) ( 1,419 )

Comprehensive income/(loss) related to noncontrolling interest

Comprehensive income/(loss) attributable to Boeing Shareholders $ 118 ($ 450 )

5 ( 12 ) ( 1 )

Comprehensive loss attributable to Boeing Shareholders ($ 272 ) ($ 1,869 ) ($ 390 ) ($ 1,419 )

See Notes to the Condensed Consolidated Financial Statements.

1 unchanged sentence

Condensed Consolidated Statements of Financial Position

(Dollars in millions, except per share data) March 31

(Dollars in millions, except per share data) June 30

2025 December 31

6 unchanged sentences

Other current assets, net 2,563 2,965

Assets held for sale 1,451

Total current assets 127,301 127,998

13 unchanged sentences

Short-term debt and current portion of long-term debt 8,719 1,278

Liabilities held for sale 504

Total current liabilities 103,376 97,078

23 unchanged sentences

Condensed Consolidated Statements of Cash Flows

(Dollars in millions) Three months ended March 31

(Dollars in millions) Six months ended June 30

Cash flows – operating activities:

6 unchanged sentences

Investment/asset impairment charges, net 30 34

Loss on dispositions, net 3

Gain on dispositions, net ( 64 ) ( 5 )

Other charges and credits, net 162 ( 34 )

15 unchanged sentences

Proceeds from disposals of property, plant and equipment 4 30

Acquisitions, net of cash acquired ( 50 )

Proceeds from dispositions 35

Contributions to investments ( 21,581 ) ( 1,617 )

Proceeds from investments 18,847 3,173

Other 1 ( 34 )

Net cash (used)/provided by investing activities ( 1,717 ) 2,074

Supplier notes receivable ( 150 ) ( 486 )

Purchase of distribution rights ( 88 )

Net cash used by investing activities ( 3,946 ) ( 26 )

Cash flows – financing activities:

3 unchanged sentences

Dividends paid on mandatory convertible preferred stock ( 158 )

Net cash used by financing activities ( 338 ) ( 4,462 )

Other 30 ( 3 )

Net cash (used)/provided by financing activities ( 725 ) 5,538

Effect of exchange rate changes on cash and cash equivalents 34 ( 25 )

7 unchanged sentences

Condensed Consolidated Statements of Equity

For the three months ended March 31, 2025 and 2024

For the six months ended June 30, 2025 and 2024

Boeing shareholders

10 unchanged sentences

Treasury shares issued for 401(k) contribution 332 621 953

Balance at March 31, 2024 $ 5,061 $ 10,539 ($ 49,105 ) $ 26,908 ($ 10,412 ) ($ 7 ) ($ 17,016 )

Other changes in noncontrolling interests 1 1

Balance at June 30, 2024 $ 5,061 $ 10,727 ($ 48,841 ) $ 25,469 ($ 10,392 ) ($ 6 ) ($ 17,982 )

Balance at January 1, 2025 $ 6 $ 5,061 $ 18,964 ($ 32,386 ) $ 15,362 ($ 10,915 ) ($ 6 ) ($ 3,914 )

8 unchanged sentences

( 172 ) ( 172 )

Balance at March 31, 2025 $ 6 $ 5,061 $ 19,008 ($ 31,879 ) $ 15,239 ($ 10,760 ) ($ 3,325 )

Balance at June 30, 2025 $ 6 $ 5,061 $ 19,238 ($ 31,603 ) $ 14,542 ($ 10,539 ) ($ 1 ) ($ 3,296 )

See Notes to the Condensed Consolidated Financial Statements.

The Boeing Company and Subsidiaries

Condensed Consolidated Statements of Equity

For the three months ended June 30, 2025 and 2024

Boeing shareholders

(Dollars in millions)

Mandatory convertible preferred stock

Treasury stock

Accumulated other comprehensive loss

Balance at April 1, 2024 $ 5,061 $ 10,539 ($ 49,105 ) $ 26,908 ($ 10,412 ) ($ 7 ) ($ 17,016 )

( 1,439 ) ( 1,439 )

Other comprehensive income, net of tax of ($ 3 )

Share-based compensation 89 89

Treasury shares issued for other share-based plans, net

Treasury shares issued for 401(k) contribution 105 242 347

Other changes in noncontrolling interests

Balance at June 30, 2024 $ 5,061 $ 10,727 ($ 48,841 ) $ 25,469 ($ 10,392 ) ($ 6 ) ($ 17,982 )

Balance at April 1, 2025 $ 6 $ 5,061 $ 19,008 ($ 31,879 ) $ 15,239 ($ 10,760 ) ($ 3,325 )

Net loss ( 611 ) ($ 1 ) ( 612 )

Other comprehensive income, net of tax of ($ 53 )

Share-based compensation 119 119

Treasury shares issued for other share-based plans, net ( 14 ) 26 12

Treasury shares issued for 401(k) contribution 125 250 375

Cash dividends declared on Mandatory convertible preferred stock

( 86 ) ( 86 )

Balance at June 30, 2025 $ 6 $ 5,061 $ 19,238 ($ 31,603 ) $ 14,542 ($ 10,539 ) ($ 1 ) ($ 3,296 )

See Notes to the Condensed Consolidated Financial Statements.

The Boeing Company and Subsidiaries

Notes to Condensed Consolidated Financial Statements

Summary of Business Segment Data

(Dollars in millions) Three months ended March 31

(Dollars in millions) Six months ended June 30 Three months ended June 30

2025 2024 2025 2024

Commercial Airplanes $ 19,021 $ 10,656 $ 10,874 $ 6,003

13 unchanged sentences

Interest and debt expense ( 1,418 ) ( 1,242 ) ( 710 ) ( 673 )

Earnings/(loss) before income taxes 76 ( 378 )

Loss before income taxes ( 485 ) ( 1,893 ) ( 561 ) ( 1,515 )

Income tax (expense)/benefit ( 158 ) 99 ( 51 ) 76

12 unchanged sentences

In the opinion of management, all adjustments (consisting of normal recurring accruals) necessary for a fair presentation are reflected in the interim financial statements.

The results of operations for the period ended March 31, 2025, are not necessarily indicative of the operating results for the full year.

The results of operations for the period ended June 30, 2025, are not necessarily indicative of the operating results for the full year.

The interim financial statements should be read in conjunction with the audited Consolidated Financial Statements, including the notes thereto, included in our 2024 Annual Report on Form 10-K.

3 unchanged sentences

Actual results could differ from those estimates.

Our Military Aircraft reporting unit within our Defense, Space & Security (BDS) segment had goodwill of $ 1,295 and a negative carrying value at March 31, 2025.

We performed our annual goodwill impairment test as of April 1, 2025, using a qualitative assessment.

We determined the fair value of each of our reporting units substantially exceeded their respective carrying values.

Our Military Aircraft reporting unit within our Defense, Space & Security (BDS) segment had goodwill of $ 1,295 and a negative carrying value at June 30, 2025.

Long-term Contracts

4 unchanged sentences

The table below reflects the impact of net cumulative catch-up adjustments for changes in estimated revenues and costs at completion across all long-term contracts, including the impact to Earnings/(loss) from operations from changes in estimated losses on unexercised options.

(In millions - except per share amounts) Three months ended March 31

(In millions - except per share amounts) Six months ended June 30 Three months ended June 30

2025 2024 2025 2024

Decrease to Revenue ($ 306 ) ($ 965 ) ($ 166 ) ($ 747 )

Increase to Loss from operations

(Decrease) to Earnings/increase to (loss) from operations

($ 338 ) ($ 1,700 ) ($ 187 ) ($ 1,334 )

3 unchanged sentences

On June 30, 2024, we entered into an Agreement and Plan of Merger (the Merger Agreement) pursuant to which we have agreed to acquire Spirit AeroSystems Holdings, Inc.

(Spirit) in an all-stock transaction at an equity value of approximately $ 4,700 , or $ 37.25 per share of Spirit Class A Common Stock.

The transaction will include the assumption of Spirit's net debt at closing.

(Spirit) in an all-stock transaction (the

Boeing-Spirit Merger) at an equity value of approximately $ 4,700 , or $ 37.25 per share of Spirit Class A Common Stock (Spirit common stock).

The Boeing-Spirit Merger will include the assumption of Spirit's net debt at closing.

On January 31, 2025, Spirit's stockholders approved the Merger Agreement and the related transactions.

Each share of Spirit common stock will be exchanged for a number of shares of Boeing common stock equal to an exchange ratio between 0.18 and 0.25 , calculated as $ 37.25 divided by the volume weighted average share price of Boeing shares over the 15 -trading-day period ending on the second trading day prior to the closing (subject to a floor of $ 149.00 per share and a ceiling of $ 206.94 per share).

Spirit stockholders will receive 0.25 Boeing shares for each of their Spirit shares if the volume-weighted average price is at or below $ 149.00 , and 0.18 Boeing shares for each of their Spirit shares if the volume-weighted average price is at or above $ 206.94 per share.

Boeing's acquisition of Spirit will include substantially all Boeing-related commercial operations, as well as certain other operations.

Spirit has also entered into a binding term sheet with Airbus SE (Airbus) setting forth the terms upon which Airbus will, assuming the parties enter into definitive agreements and receive all required regulatory approvals, acquire certain commercial work packages that Spirit performs for Airbus concurrently with the closing of the Boeing-Spirit merger.

In addition, Spirit is selling certain of its other operations.

The transaction is expected to close mid-2025 and is subject to the sale of the Spirit operations related to certain Airbus commercial work packages and the satisfaction of customary closing conditions, including certain regulatory approvals.

On January 31, 2025, Spirit's stockholders approved the Merger Agreement and the related transactions.

The Merger Agreement contains certain termination rights, including that either Boeing or Spirit may terminate the Merger Agreement if, subject to certain limitations, the transaction has not been consummated by March 31, 2025 (subject to three automatic three-month extensions if on each such date or the last day of each extension period, as applicable , all of the closing conditions except those relating to regulatory approvals have been satisfied or waived) (the Outside Date).

The first automatic extension is now in effect.

Accordingly, the Outside Date is currently June 30, 2025.

If either party breaches or fails to perform any of its representations, warranties or covenants under the Merger Agreement such that the related conditions to the other party's obligation to consummate the Merger would not be satisfied, and such breach or failure is not curable by the Outside Date or, if curable by the Outside Date, has not been cured within 30 days following notice thereof, such other party may terminate the Merger Agreement.

The Merger Agreement contains certain termination rights, including that either Boeing or Spirit may terminate the Merger Agreement if, subject to certain limitations, the Boeing-Spirit Merger has not been consummated by March 31, 2025 (subject to three automatic three-month extensions if on each such date or the last day of each extension period, as applicable , all of the closing conditions except those relating to regulatory approvals have been satisfied or waived) (the Outside Date).

The second automatic extension came into effect on July 1, 2025.

Accordingly, the Outside Date is currently September 30, 2025.

If either party breaches or fails to perform any of its representations, warranties or covenants under the Merger Agreement such that the related conditions to the other party's obligation to consummate the Boeing-Spirit Merger would not be satisfied, and such breach or failure is not curable by the Outside Date or, if curable by the Outside Date, has not been cured within 30 days following notice thereof, such other party may terminate the Merger Agreement.

The Merger Agreement also provides that we will be required to pay Spirit a termination fee of $ 300 if the Merger Agreement is terminated by Spirit or Boeing under certain specified circumstances as a result of the parties' failure to obtain the required regulatory approvals by the Outside Date or in the event that any law or order related to the required regulatory approvals or any applicable antitrust law or foreign investment law prohibits the consummation of the Merger.

The Boeing-Spirit Merger is expected to close in 2025 and is subject to the completion of the sale of Spirit operations related to certain Airbus SE (Airbus) commercial work packages and the satisfaction of customary closing conditions, including certain regulatory approvals.

On April 27, 2025, Spirit entered into a Stock and Asset Purchase Agreement (SAPA) with Airbus pursuant to which Airbus will, subject to the satisfaction of customary closing conditions, including certain regulatory approvals, acquire certain commercial work packages that Spirit performs for Airbus concurrently with the closing of the Boeing-Spirit Merger.

As part of the transactions contemplated by the SAPA, Spirit will also make a cash payment to Airbus in an amount equal to $ 439 , which amount is subject to adjustment in accordance with the terms of the SAPA (such adjusted amount, the Airbus Payment).

Pursuant to the terms of the Merger Agreement, Boeing is required to fund any portion of the Airbus Payment that Spirit is unable to satisfy with cash on hand as of the closing of the transactions contemplated by the SAPA.

During 2023 and 2024, Boeing reached agreements to provide Spirit up to $ 1,067 to support its liquidity, rate readiness, and 787 tooling and capital expenditures, of which $ 16 has yet to be drawn.

At March 31, 2025 and December 31, 2024, Other current assets included $ 24 and $ 539 and Other assets included $ 784 and $ 299 .

At March 31, 2025 and December 31, 2024, advance payments to Spirit of $ 162 and $ 165 were included in Inventories and are scheduled to be recovered as the related shipsets are received by Boeing from Spirit.

Spirit has repaid $ 40 with $ 1,011 still outstanding at June 30, 2025, of which $ 973 is recorded as supplier notes receivable, net of interest, within our Condensed Consolidated Statements of Financial Position.

On January 22, 2025, Boeing and Spirit reached an agreement to reschedule repayment dates for $ 515 to 2026.

1 unchanged sentence

In the event that the Merger Agreement is terminated in accordance with its terms, the then outstanding balances will become due and payable in full on April 1, 2026.

At June 30, 2025 and December 31, 2024, Other current assets included $ 414 and $ 539 and Other assets included $ 559 and $ 299 owed to us under these agreements.

At June 30, 2025 and December 31,

2024, advance payments to Spirit of $ 161 and $ 165 were included in Inventories and are scheduled to be recovered as the related shipsets are received by Boeing from Spirit.

Note 3 – Digital Aviation Solutions Divestiture

On April 22, 2025, we announced that we entered into an agreement with Thoma Bravo to sell portions of our BGS segment’s Digital Aviation Solutions business for $ 10.55 billion.

The sale will include Jeppesen, ForeFlight, AerData and OzRunways.

We expect the transaction to close in 2025 and result in a gain at closing.

The transaction is subject to regulatory approval and customary closing conditions.

At June 30, 2025, Digital Aviation Solutions assets of $ 1,451 and liabilities of $ 504 were classified as held for sale on our Condensed Consolidated Statements of Financial Position.

Assets held for sale primarily include Goodwill of $ 810 , Acquired intangible assets, net of $ 310 , and Accounts receivable, net of $ 139 .

Liabilities held for sale primarily include Advances and progress billings of $ 309 and Accrued liabilities of $ 116 .

Note 4 – Earnings Per Share

6 unchanged sentences

The elements used in the computation of Basic and Diluted loss per share were as follows:

(In millions - except per share amounts) Three months ended March 31

(In millions - except per share amounts) Six months ended June 30 Three months ended June 30

2025 2024 2025 2024

Net loss attributable to Boeing shareholders ($ 648 ) ($ 1,782 ) ($ 611 ) ($ 1,439 )

4 unchanged sentences

Basic weighted average shares outstanding

755.2 614.8 756.8 616.6

participating securities (1)

0.2 0.3 0.2 0.3

Basic weighted average common shares outstanding

755.0 614.5 756.6 616.3

Diluted weighted average shares outstanding

755.2 614.8 756.8 616.6

participating securities (1)

0.2 0.3 0.2 0.3

Diluted weighted average common shares outstanding

755.0 614.5 756.6 616.3

Net loss per share:

3 unchanged sentences

The following table represents potential common shares that were not included in the computation of Diluted loss per share because the effect was antidilutive based on their strike price or the performance condition was not met.

(Shares in millions) Three months ended March 31

(Shares in millions) Six months ended June 30 Three months ended June 30

2025 2024 2025 2024

Performance restricted stock units 0.6 0.6 0.5 0.7

1 unchanged sentence

Stock options 0.9 0.8 0.8 0.8

In addition, potential common shares of 37.1 million and 3.1 million for the three months ended March 31, 2025 and 2024 were excluded from the computation of Diluted loss per share, because the effect would have been antidilutive as a result of incurring a net loss in those periods.

In addition, potential common shares of 36.8 million and 2.9 million for the six months ended June 30, 2025 and 2024 and 36.9 million and 2.7 million for the three months ended June 30, 2025 and 2024 were excluded from the computation of Diluted loss per share, because the effect would have been antidilutive as a result of incurring a net loss in those periods.

Note 5 – Income Taxes

Our effective tax rates were 140.8 % and 6.1 % for the three months ended March 31, 2025 and 2024.

The effective tax rate for the three months ended March 31, 2025, primarily reflects an increase in the domestic income tax valuation allowance treated as a discrete expense.

We computed our 2025 interim tax provision using an estimated annual effective tax rate of ( 9.0 )%.

Our 2025 estimated annual effective tax rate is primarily driven by taxes on non-U.S.

Our effective tax rates were ( 32.6 )% and 5.2 % for the six months ended June 30, 2025 and 2024.

The ( 32.6 )% effective tax rate for the six months ended June 30, 2025 is primarily driven by discrete items related to increases in the valuation allowance.

Our effective tax rates for the three months ended June 30, 2025 and 2024 were ( 9.1 )% and 5.0 %.

As of December 31, 2024, we had recorded valuation allowances of $ 7,837 primarily for certain domestic deferred tax assets, and certain domestic net operating losses, tax credits and interest carryforwards.

To measure the valuation allowance, the Company estimated in what year each of its deferred tax assets and liabilities would reverse using systematic and logical methods to estimate the reversal patterns.

To measure the valuation allowance, the Company estimated in what year each of its deferred tax assets

and liabilities would reverse using systematic and logical methods to estimate the reversal patterns.

The valuation allowance results from not having sufficient income from deferred tax liability reversals in the appropriate future periods to support the realization of deferred tax assets.

4 unchanged sentences

We believe appropriate provisions for all outstanding tax issues have been made for all jurisdictions and all open years.

On July 4, 2025, the President signed into law the One Big Beautiful Bill Act (OBBBA).

The OBBBA maintains the 21 percent corporate tax rate and makes permanent many of the beneficial expired and expiring tax provisions originally enacted in the Tax Cuts and Jobs Act of 2017, including the immediate expensing of domestic R&D expenditures, more favorable interest deductibility and 100 percent bonus depreciation with effective dates in 2025.

Revisions to the international tax framework are effective in 2026.

We do not expect the OBBBA to have a material effect on our financial position, results of operations or cash flows in 2025.

Note 6 – Allowances for Losses on Financial Assets

The changes in allowances for expected credit losses for the three months ended March 31, 2025 and 2024, consisted of the following:

The changes in allowances for expected credit losses for the six months ended June 30, 2025 and 2024, consisted of the following:

Accounts receivable Unbilled receivables Other current assets Financing receivables

4 unchanged sentences

Recoveries 1 1

Balance at March 31, 2024

Balance at June 30, 2024

($ 96 ) ($ 20 ) ($ 41 ) ($ 16 ) ($ 169 ) ($ 342 )

3 unchanged sentences

Recoveries 1 1

Balance at March 31, 2025

Balance at June 30, 2025

($ 77 ) ($ 43 ) ($ 55 ) ($ 4 ) ($ 243 ) ($ 422 )

8 unchanged sentences

Total $ 87,853 $ 87,550

(1) Capitalized precontract costs at March 31, 2025 and December 31, 2024, included amounts related to Commercial Crew, T-7A Red Hawk Production Options and KC-46A Tanker.

(1) Capitalized precontract costs at June 30, 2025 and December 31, 2024, included amounts related to Commercial Crew, T-7A Red Hawk Production Options and KC-46A Tanker.

Commercial Aircraft Programs

At March 31, 2025 and December 31, 2024, commercial aircraft programs inventory included the following amounts related to the 737 program:

At June 30, 2025 and December 31, 2024, commercial aircraft programs inventory included the following amounts related to the 737 program:

deferred production costs of $ 11,001 and $ 9,679 and unamortized tooling and other non-recurring costs of $ 867 and $ 909 .

At March 31, 2025, $ 11,587 of 737 deferred production costs, unamortized tooling and other non-recurring costs are expected to be recovered from units included in the program accounting quantity that have firm orders, and $ 52 is expected to be recovered from units included in the program accounting quantity that represent expected future orders.

At March 31, 2025 and December 31, 2024, commercial aircraft programs inventory included the following amounts related to the 777X program:

At June 30, 2025, $ 11,831 of 737 deferred production costs, unamortized tooling and other non-recurring costs are expected to be recovered from units included in the program accounting quantity that have firm orders, and $ 37 is expected to be recovered from units included in the program accounting quantity that represent expected future orders.

At June 30, 2025 and December 31, 2024, commercial aircraft programs inventory included the following amounts related to the 777X program:

$ 4,883 and $ 3,476 of work in process (including deferred production costs of $ 1,072 and $ 0 ) and $ 4,318 and $ 4,122 of unamortized tooling and other non-recurring costs.

At March 31, 2025 and December 31, 2024, commercial aircraft programs inventory included the following amounts related to the 787 program:

At June 30, 2025 and December 31, 2024, commercial aircraft programs inventory included the following amounts related to the 787 program:

deferred production costs of $ 13,320 and $ 13,178 , supplier advances of $ 1,277 and $ 1,379 , and unamortized tooling and other non-recurring costs of $ 1,310 and $ 1,370 .

At March 31, 2025, $ 11,902 of 787 deferred production costs, unamortized tooling and other non-recurring costs are expected to be recovered from units included in the program accounting quantity that have firm orders, and $ 2,911 are expected to be recovered from units included in the program accounting quantity that represent expected future orders.

We expensed abnormal production costs of $ 30 and $ 80 during the three months ended March 31, 2025 and 2024.

Commercial aircraft programs inventory included amounts credited in cash or other consideration (early issue sales consideration) to airline customers totaling $ 5,953 and $ 5,837 at March 31, 2025 and December 31, 2024.

At June 30, 2025, $ 12,248 of 787 deferred production costs, unamortized tooling and other non-recurring costs are expected to be recovered from units included in the program accounting quantity that have firm orders, and $ 2,382 are expected to be recovered from units included in the program accounting quantity that represent expected future orders.

We expensed abnormal production costs of $ 30 and $ 157 during the six months ended June 30, 2025 and 2024.

Commercial aircraft programs inventory included amounts credited in cash or other consideration (early issue sales consideration) to airline customers totaling $ 6,245 and $ 5,837 at June 30, 2025 and December 31, 2024.

Note 8 – Contracts with Customers

Unbilled receivables increased from $ 8,363 at December 31, 2024, to $ 9,031 at March 31, 2025, primarily driven by revenue recognized in excess of billings at BDS.

Advances and progress billings increased from $ 60,333 at December 31, 2024, to $ 61,114 at March 31, 2025, primarily driven by advances on orders received at Commercial Airplanes (BCA) and BGS, partially offset by revenue recognized at BDS.

Revenues recognized during the three months ended March 31, 2025 and 2024, from amounts recorded as Advances and progress billings at the beginning of each year were $ 5,488 and $ 4,181 .

Unbilled receivables increased from $ 8,363 at December 31, 2024, to $ 9,261 at June 30, 2025, primarily driven by revenue recognized in excess of billings at BDS and BGS.

Advances and progress billings decreased from $ 60,333 at December 31, 2024, to $ 59,407 at June 30, 2025, primarily driven by revenue recognized at BDS, partially offset by advances on orders received at Commercial Airplanes (BCA) and BGS.

Revenues recognized during the six months ended June 30, 2025 and 2024, from amounts recorded as Advances and progress billings at the beginning of each year were $ 11,177 and $ 7,877 .

Revenues recognized during the three months ended June 30, 2025 and 2024, from amounts recorded as Advances and progress billings at the beginning of each year were $ 5,689 and $ 3,696 .

Note 9 – Financing Receivables and Operating Lease Equipment

8 unchanged sentences

Total $ 334 $ 521

Our financing arrangements range in terms from 1 to 7 years, and include $ 191 of Investment in sales-type leases, net of allowances, that will be repaid in one year or less.

Our financing arrangements range in terms from one to seven years , and include $ 5 of Investment in sales-type leases, net of allowances, that will be repaid in one year or less.

Financing arrangements may include options to extend or terminate.

Certain leases include provisions to allow the lessee to purchase the underlying aircraft at a specified price.

At March 31, 2025 and December 31, 2024, $ 4 and $ 7 were determined to be uncollectible financing receivables and placed on non-accrual status.

The allowance for losses on financing receivables decreased primarily due to cash collections during the three months ended March 31, 2025.

At June 30, 2025 and December 31, 2024, $ 4 and $ 7 were determined to be uncollectible financing receivables and placed on non-accrual status.

The allowance for losses on financing receivables decreased primarily due to cash collections during the six months ended June 30, 2025.

The components of investment in sales-type leases consisted of the following:

3 unchanged sentences

Net lease payments receivable $ 9 $ 203

Unguaranteed residual assets

Total $ 195 $ 203

Financing interest income recorded for the three months ended March 31, 2025 and 2024, was $ 2 and $ 2 .

Our financing receivable balances at March 31, 2025 by internal credit rating category and year of origination consisted of the following:

Rating categories 2023 2022 2021 Prior Total

BBB $ 31 $ 27 $ 121 $ 13 $ 192

There were no unguaranteed residual assets at June 30, 2025, and December 31, 2024.

Financing interest income recorded for the six months ended June 30, 2025 and 2024, was $ 3 and $ 4 .

Our financing receivable balances at June 30, 2025 by internal credit rating category and year of origination consisted of the following:

Rating categories 2021 and Prior

Total carrying value of financing receivables $ 89

At March 31, 2025, our allowance for losses related to receivables with ratings of CCC, B and BBB.

At June 30, 2025, our allowance for losses related to receivables with ratings of CCC, B and BBB.

We applied default rates that averaged 99.9 %, 0.0 % and 0.1 %, respectively, to the exposure associated with those receivables.

1 unchanged sentence

2025 December 31

717 Aircraft (Accounted for as sales-type leases)

777 Aircraft (Accounted for as operating leases)

1 unchanged sentence

737 Aircraft (Primarily accounted for as operating leases) 46 47

Lease income recorded in Sales of services on the Condensed Consolidated Statements of Operations for the three months ended March 31, 2025 and 2024, included $ 5 and $ 10 of interest income from sales-type leases and $ 12 and $ 18 from operating lease payments.

Variable lease payments for sales-type leases recognized in interest income for the three months ended March 31, 2025 and 2024, were insignificant.

Variable lease payments on operating leases for the three and three months ended March 31, 2025 and 2024, were insignificant.

Profit at the commencement of sales-type leases for the three months ended March 31, 2025 and 2024, was insignificant.

717 Aircraft (Accounted for as sales-type leases)

Lease income recorded in Sales of services on the Condensed Consolidated Statements of Operations for the six months ended June 30, 2025 and 2024, included $ 6 and $ 21 of interest income from sales-type leases and $ 23 and $ 32 from operating lease payments.

Variable lease payments for sales-type leases recognized in interest income for the six months ended June 30, 2025 and 2024, were insignificant.

Variable lease payments on operating leases for the six and three months ended June 30, 2025 and 2024, were insignificant.

Profit at the commencement of sales-type leases for the six months ended June 30, 2025 and 2024, was insignificant.

Note 10 – Investments

9 unchanged sentences

(1) Primarily included in Short-term and other investments on our Condensed Consolidated Statements of Financial Position.

(2) Dividends received were $ 2 and $ 20 during the three months ended March 31, 2025 and 2024.

(3) Reflects amounts restricted in support of our workers’ compensation programs and insurance premiums.

(2) Dividends received were $ 10 and $ 8 during the six and three months ended June 30, 2025 and $ 37 and $ 17 for the same periods in 2024.

(3) At June 30, 2025, Restricted cash & cash equivalents includes $ 689 placed in escrow pursuant to the May 2025 non-prosecution agreement with the U.S.

Department of Justice.

See Note 18 for additional discussion.

Contributions to investments and Proceeds from investments on our Condensed Consolidated Statements of Cash Flows primarily relate to time deposits and available-for-sale debt investments.

Cash used for the purchase of time deposits during the three months ended March 31, 2025 and 2024, was $ 8,635 and $ 90 .

Cash proceeds from the maturities of time deposits during the three months ended March 31, 2025 and 2024, were $ 7,585 a nd $ 2,740 .

Cash used for the purchase of time deposits during the six months ended June 30, 2025 and 2024, was $ 21,245 and $ 1,298 .

Cash proceeds from the maturities of time deposits during the six months ended June 30, 2025 and 2024, were $ 18,540 a nd $ 2,845 .

Allowance for losses on available-for-sale debt investments are assessed quarterly.

These instruments are considered investment grade, and we have not recognized an allowance for credit losses as of March 31, 2025.

These instruments are considered investment grade, and we have not recognized an allowance for credit losses as of June 30, 2025.

Fair value of available-for-sale debt investments approximates amortized cost.

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This charge is reflected in the financial statements as a reduction to Sales of products.

The following table summarizes changes in the 737 MAX customer concessions and other considerations liability during the three months ended March 31, 2025 and 2024.

The following table summarizes changes in the 737 MAX customer concessions and other considerations liability during the six months ended June 30, 2025 and 2024.

Beginning balance – January 1 $ 641 $ 1,327

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Changes in estimates ( 5 ) 510

Ending balance – March 31 $ 568 $ 1,284

At March 31, 2025, $ 92 of the liability balance remains subject to negotiations with customers.

Ending balance – June 30 $ 506 $ 935

At June 30, 2025, $ 87 of the liability balance remains subject to negotiations with customers.

The contracted amount includes $ 95 expected to be paid in cash primarily in 2025, while the remaining amounts are primarily expected to be liquidated by lower customer delivery payments.

Environmental

The following table summarizes changes in environmental remediation liabilities during the three months ended March 31, 2025 and 2024.

The following table summarizes changes in environmental remediation liabilities during the six months ended June 30, 2025 and 2024.

Beginning balance – January 1 $ 834 $ 844

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Changes in estimates 49 27

Ending balance – March 31 $ 855 $ 837

Ending balance – June 30 $ 848 $ 831

The liabilities recorded represent our best estimate or the low end of a range of reasonably possible costs expected to be incurred to remediate sites, including operation and maintenance over periods of up to 30 years.

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There are some potential remediation obligations where the costs of remediation cannot be reasonably estimated.

At March 31, 2025 and December 31, 2024, the high end of the estimated range of reasonably possible remediation costs exceeded our recorded liabilities by $ 996 and $ 1,002 .

At June 30, 2025 and December 31, 2024, the high end of the estimated range of reasonably possible remediation costs exceeded our recorded liabilities by $ 1,000 and $ 1,002 .

Product Warranties

The following table summarizes changes in product warranty liabilities recorded during the three months ended March 31, 2025 and 2024.

The following table summarizes changes in product warranty liabilities recorded during the six months ended June 30, 2025 and 2024.

Beginning balance – January 1 $ 2,133 $ 2,448

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Changes in estimates 298 ( 8 )

Ending balance – March 31 $ 2,323 $ 2,395

Ending balance – June 30 $ 2,339 $ 2,255

Commercial Aircraft Trade-In Commitments

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Trade-in commitments, which can be terminated by mutual consent with the customer, may be exercised only during the period specified in the agreement, and require advance notice by the customer.

Trade-in commitment agreements at March 31, 2025, have expiration dates from 2025 through 2032.

At March 31, 2025, and December 31, 2024, total contractual trade-in commitments were $ 1,512 and $ 1,393 .

As of March 31, 2025 and December 31, 2024, we estimated it was probable we would be obligated to perform on certain of these commitments with net amounts payable to customers totaling $ 71 and $ 275 and the fair value of the related trade-in aircraft was $ 67 and $ 270 .

Trade-in commitment agreements at June 30, 2025, have expiration dates from 2025 through 2032.

At June 30, 2025, and December 31, 2024, total contractual trade-in commitments were $ 1,403 and $ 1,393 .

As of June 30, 2025 and December 31, 2024, we estimated it was probable we would be obligated to perform on certain of these commitments with net amounts payable to customers totaling $ 65 and $ 275 and the fair value of the related trade-in aircraft was $ 63 and $ 270 .

Financing Commitments

Financing commitments related to aircraft on order, including options and those proposed in sales campaigns, and refinancing of delivered aircraft, totaled $ 17,157 and $ 17,124 as of March 31, 2025 and December 31, 2024.

The estimated earliest potential funding dates for these commitments as of March 31, 2025 are as follows:

April through December 2025

Financing commitments related to aircraft on order, including options and those proposed in sales campaigns, and refinancing of delivered aircraft, totaled $ 16,586 and $ 17,124 as of June 30, 2025 and December 31, 2024.

The estimated earliest potential funding dates for these commitments as of June 30, 2025 are as follows:

July through December 2025

Thereafter 3,511

As of March 31, 2025, $ 13,832 of these financing commitments relate to customers we believe have less than investment-grade credit.

As of June 30, 2025, $ 13,260 of these financing commitments relate to customers we believe have less than investment-grade credit.

We have concluded that no reserve for future potential losses is required for these financing commitments based upon the terms, such as collateralization and interest rates, under which funding would be provided.

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We have entered into standby letters of credit and surety bonds with financial institutions primarily relating to the guarantee of our future performance on certain contracts and security agreements.

Contingent liabilities on outstanding letters of credit agreements and surety bonds aggregated approximately $ 3,036 and $ 2,991 as of March 31, 2025 and December 31, 2024.

Contingent liabilities on outstanding letters of credit agreements and surety bonds aggregated approximately $ 2,976 and $ 2,991 as of June 30, 2025 and December 31, 2024.

Supply Chain Financing Programs

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The Company confirms the validity of invoices from participating suppliers and agrees to pay the intermediary an amount based on invoice totals.

The majority of amounts payable under these programs are due within 30 to 90 days but may extend up to 12 months.

At March 31, 2025 and December 31, 2024, Accounts payable included $ 2,107 and $ 2,703 payable to suppliers who have elected to participate in these programs.

The majority of amounts payable under these programs are due within 30 to 90 days.

At June 30, 2025 and December 31, 2024, Accounts payable included $ 1,638 and $ 2,703 payable to suppliers who have elected to participate in these programs.

We do not believe that future changes in the availability of supply chain financing would have a significant impact on our liquidity.

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If we are unable to satisfactorily resolve disputed costs, we could be required to record an earnings charge and/or provide refunds to the U.S.

In March 2025, the U.S.

Air Force (USAF) announced that Boeing has been awarded a contract to design, build and deliver the F-47, its next-generation fighter aircraft.

We are making certain capital expenditures that have risk for impairment pending completion of the source selection and evaluation review process for the next-generation fighter aircraft.

Total capital investment was approximately $ 500 at March 31, 2025.

Fixed-Price Contracts

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VC-25B Presidential Aircraft

The Company’s firm fixed-price contract for the Engineering and Manufacturing Development (EMD) effort on the USAF's VC-25B Presidential Aircraft, commonly known as Air Force One, is a $ 4 billion program to develop and modify two 747-8 commercial aircraft.

The Company’s firm fixed-price contract for the Engineering and Manufacturing Development (EMD) effort on the U.S.

Air Force's (USAF) VC-25B Presidential Aircraft, commonly known as Air Force One, is a $ 4 billion program to develop and modify two 747-8 commercial aircraft.

During 2024, we increased the reach-forward loss on the contract by $ 379 .

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Since 2016, the USAF has authorized 11 low rate initial production (LRIP) lots for a total of 154 aircraft.

The EMD contract and authorized LRIP lots total approximately $ 29 billion as of March 31, 2025.

The EMD contract and authorized LRIP lots total approximately $ 29 billion as of June 30, 2025.

The KC-46A Tanker is a derivative of the 767 commercial airplane program with the majority of the manufacturing costs being incurred in the 767 factory and the remaining costs being incurred in the military finishing and delivery centers.

During 2024, we increased the reach-forward loss on the KC-46A

Tanker program by $ 2,002 .

As of March 31, 2025, we had approximately $ 107 of capitalized precontract costs and $ 183 of potential termination liabilities to suppliers related to future production lots.

During 2024, we increased the reach-forward loss on the KC-46A Tanker program by $ 2,002 .

As of June 30, 2025, we had approximately $ 93 of capitalized precontract costs and $ 245 of potential termination liabilities to suppliers related to Lots 12 and 13.

Risk remains that we may record additional losses in future periods.

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During 2024, we increased the reach-forward loss by $ 339 .

We expect the initial EMD units to complete production in 2025 and begin flight testing.

During the first quarter of 2025, we initiated final assembly operations at our new facility at Mid-America St.

Louis Airport in Mascoutah, Illinois.

We expect the initial EMD units to complete production in 2025.

During the first half of 2025, we initiated final assembly operations at our new facility at Mid-America St.

Louis Airport in Mascoutah, Illinois, and began ground-based flight testing.

Risk remains that we may record additional losses in future periods.

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In 2018, we were awarded the T-7A Red Hawk program.

The EMD portion of the contract is a $ 860 fixed-price contract and includes five aircraft and seven simulators.

The production portion of the contract includes production lots for 346 T-7A Red Hawk aircraft and related services that we believe are probable of being exercised.

The EMD portion of the contract was a $ 860 fixed-price contract and included five aircraft and seven simulators.

The five EMD aircraft were delivered as of December 31, 2024, and the flight testing is ongoing.

In January 2025, the USAF announced an updated acquisition approach for the T-7A Red Hawk that allows the Company to provide a production-ready configuration to the customer prior to low-rate initial production, which better supports the operational needs of the customer and reduces future production risk.

In June 2025, the customer ordered four production representative test vehicles.

The production portion of the contract now includes production lots for 342 T-7A Red Hawk aircraft and related services that we believe are probable of being exercised.

During 2024, we increased the reach-forward loss on the T-7A Red Hawk program by $ 1,770 .

At March 31, 2025, we had approximately $ 361 of capitalized precontract costs and $ 783 of potential termination liabilities to suppliers related to certain long-lead items for the first 4 production lots.

At June 30, 2025, we had approximately $ 266 of capitalized precontract costs and $ 742 of potential termination liabilities to suppliers related to certain long-lead items for future production lots.

Risk remains that we may record additional losses in future periods.

Commercial Crew

The National Aeronautics and Space Administration has contracted us to design and build the CST-100 Starliner spacecraft to transport crews to the International Space Station (ISS).

The National Aeronautics and Space Administration has contracted us to design and build the CST-100 Starliner spacecraft to transport crews to the International Space Station.

During 2024, we increased the reach-forward loss by $ 523 .

We are continuing to work toward crew certification and resolve the propulsion system anomalies.

At March 31, 2025, we had approximately $ 401 of capitalized precontract costs and $ 147 of potential termination liabilities to suppliers related to unauthorized future missions.

At June 30, 2025, we had approximately $ 404 of capitalized precontract costs and $ 144 of potential termination liabilities to suppliers related to unauthorized future missions.

Risk remains that we may record additional losses in future periods.

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2025 December 31

2024 March 31

2025 December 31

2024 March 31

2025 December 31

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Credit guarantees 15 15 $ 14 $ 14

Contingent Repurchase Commitments In conjunction with signing a definitive agreement for the sale of commercial aircraft, we have entered into contingent repurchase commitments with certain customers wherein we agree to repurchase the sold aircraft at a specified price, generally 10 to 15 years after

Our repurchase of the aircraft is contingent upon entering into a mutually acceptable agreement for the sale of additional new aircraft in the future.

The commercial aircraft repurchase price specified in contingent repurchase commitments is generally lower than the expected fair value at the specified repurchase date.

The commercial aircraft repurchase price specified in contingent repurchase commitments is generally lower than the expected fair value at the specified

repurchase date.

Estimated proceeds from collateral/recourse in the table above represent the lower of the contracted repurchase price or the expected fair value of each aircraft at the specified repurchase date.

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Note 13 – Postretirement Plans

The components of net periodic benefit cost/(income) for the three months ended March 31 were as follows:

Pension Postretirement

The components of net periodic benefit cost/(income) were as follows:

Six months ended June 30 Three months ended June 30

Pension Plans 2025 2024 2025 2024

Service cost $ 4 $ 3 $ 3 $ 1

Interest cost 1,338 1,318 669 659

Expected return on plan assets ( 1,539 ) ( 1,656 ) ( 770 ) ( 827 )

Amortization of prior service credits ( 37 ) ( 41 ) ( 18 ) ( 21 )

Recognized net actuarial loss 153 134 77 67

Net periodic benefit income ($ 81 ) ($ 242 ) ($ 39 ) ($ 121 )

Net periodic benefit cost included in Earnings/(loss) from operations $ 4 $ 3 $ 3 $ 1

Net periodic benefit income included in Other income, net ( 85 ) ( 245 ) ( 42 ) ( 122 )

Net periodic benefit income included in Loss before income taxes

($ 81 ) ($ 242 ) ($ 39 ) ($ 121 )

Six months ended June 30 Three months ended June 30

Other Postretirement Plans 2025 2024 2025 2024

Service cost $ 25 $ 25 $ 12 $ 13

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Amortization of prior service credits ( 5 ) ( 2 )

Recognized net actuarial loss/(gain) 76 67 ( 36 ) ( 44 )

Net periodic benefit (income)/cost ($ 42 ) ($ 121 ) $ 8 ($ 6 )

Recognized net actuarial gain ( 71 ) ( 88 ) ( 35 ) ( 44 )

Net periodic benefit cost/(income) $ 16 ($ 12 ) $ 8 ($ 6 )

Net periodic benefit cost included in Earnings/(loss) from operations $ 25 $ 23 $ 12 $ 12

Net periodic benefit income included in Other income, net ( 9 ) ( 37 ) ( 4 ) ( 19 )

Net periodic benefit income included in Earnings/(loss) before income taxes

Net periodic benefit cost/(income) included in Loss before income taxes

$ 16 ($ 14 ) $ 8 ($ 7 )

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The fair value of the stock options granted was $ 79.53 per unit and was estimated using a Monte-Carlo simulation model using the following assumptions:

expected life 7.0 years, expected volatility 39.0 %, risk free interest rate 4.5 % and no expected dividend yield.

expected life seven years , expected volatility 39.0 %, risk free interest rate 4.5 % and no expected dividend yield.

Restricted Stock Units

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Dividends that are declared will be payable on January 15, April 15, July 15 and October 15 to holders of record on the January 1, April 1, July 1, and October 1 immediately preceding the relevant dividend payment date.

On January 15, 2025, dividends of $ 72 , representing $ 12.50 per share, were paid in cash to holders of record as of January 1, 2025.

In February 2025, dividends of $ 86 were declared to holders of record as of April 1, 2025, representing $ 15.00 per share, and were paid in cash on April 15, 2025.

Dividends paid on Mandatory convertible preferred stock were $ 158 and $ 86 for the six and three months ended June 30, 2025.

In June 2025, dividends of $ 86 were declared to holders of record as of July 1, 2025, representing $ 15.00 per share, and were paid in cash on July 15, 2025.

The following table illustrates the conversion rate per share of Mandatory convertible preferred stock, subject to certain anti-dilution adjustments, based on the applicable market value of the common stock:

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Accumulated Other Comprehensive Loss

Changes in Accumulated other comprehensive loss (AOCI) by component for the three months ended March 31, 2025 and 2024, were as follows:

Changes in Accumulated other comprehensive loss (AOCI) by component for the six and three months ended June 30, 2025 and 2024, were as follows:

Currency Translation Adjustments Unrealized Gains and Losses on Certain Investments Unrealized Gains and Losses on Derivative Instruments

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( 24 ) ( 50 ) ( 13 ) ( 87 )

Balance at March 31, 2024 ($ 169 ) $ 2 ($ 46 ) ($ 10,199 ) ($ 10,412 )

Balance at June 30, 2024 ($ 158 ) $ 2 ($ 38 ) ($ 10,198 ) ($ 10,392 )

Balance at January 1, 2025 ($ 178 ) $ 2 ($ 211 ) ($ 10,528 ) ($ 10,915 )

Other comprehensive income before reclassifications

Other comprehensive income/(loss) before reclassifications

108 206 ( 2 ) 312

Amounts reclassified from AOCI

Net current period Other comprehensive income

108 234 34 376

Balance at June 30, 2025 ($ 70 ) $ 2 $ 23 ($ 10,494 ) ($ 10,539 )

Balance at March 31, 2024 ($ 169 ) $ 2 ($ 46 ) ($ 10,199 ) ($ 10,412 )

Other comprehensive income/(loss) before reclassifications

11 ( 11 ) 1 1

Amounts reclassified from AOCI

Net current period Other comprehensive income

Balance at June 30, 2024 ($ 158 ) $ 2 ($ 38 ) ($ 10,198 ) ($ 10,392 )

Balance at March 31, 2025 ($ 132 ) $ 2 ($ 125 ) ($ 10,505 ) ($ 10,760 )

Other comprehensive income/(loss) before reclassifications

62 138 ( 2 ) 198

Amounts reclassified from AOCI

Net current period Other comprehensive income

62 148 11 221

Balance at June 30, 2025 ($ 70 ) $ 2 $ 23 ($ 10,494 ) ($ 10,539 )

(1) Net of tax.

(2) Primarily relates to the amortization of prior service credits and actuarial losses included in net periodic benefit cost for the three months ended March 31, 2025 and 2024 totaling $ 23 and $ 0 (net of tax of $ 2 and $ 0 ).

Note 16 – Derivative Financial Instruments

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2025 December 31

2024 March 31

2025 December 31

2024 March 31

2025 December 31

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(1) Notional amounts represent the gross contract/notional amount of the derivatives outstanding.

Gains/(losses) associated with our hedging transactions and forward points recognized in Other comprehensive income/(loss) are presented in the following table:

Three months ended March 31

Recognized in Other comprehensive income/(loss), net of taxes:

Gains/(losses) associated with our hedging transactions and forward points recognized in Other comprehensive income/(loss), net of tax are presented in the following table:

Six months ended June 30 Three months ended June 30

2025 2024 2025 2024

Recognized in Other comprehensive income/(loss), net of tax:

Foreign exchange contracts $ 201 ($ 75 ) $ 134 ($ 18 )

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(Losses)/gains associated with our hedging transactions and forward points reclassified from AOCI to earnings are presented in the following table:

Three months ended March 31

Six months ended June 30 Three months ended June 30

2025 2024 2025 2024

Foreign exchange contracts

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General and administrative expense 3 3 1 1

Gains/(losses) related to undesignated derivatives on foreign exchange and commodity cash flow hedging transactions recognized in Other income, net were insignificant for the three months ended March 31, 2025 and 2024.

Based on our portfolio of cash flow hedges, we expect to reclassify losses of $ 8 (pre-tax) out of AOCI into earnings during the next 12 months.

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If we default on our five-year credit facilities, our derivative counterparties could require settlement for foreign exchange and certain commodity contracts with original maturities of at least five years .

The fair value of those contracts in a net liability position at March 31, 2025 was $ 14 .

The fair value of those contracts in a net liability position at June 30, 2025 was $ 4 .

For other particular commodity contracts, our counterparties could require collateral posted in an amount determined by our credit ratings.

At March 31, 2025, there was no collateral posted related to our derivatives.

At June 30, 2025, there was no collateral posted related to our derivatives.

Note 17 – Fair Value Measurements

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The following table presents our assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy.

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Total Level 1 Level 2 Total Level 1 Level 2

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Certain assets have been measured at fair value on a nonrecurring basis.

The following table presents the nonrecurring losses recognized for the three months ended March 31 due to long-lived asset impairment and the fair value of the related assets as of the impairment date:

The following table presents the nonrecurring losses recognized for the six months ended June 30 due to long-lived asset impairment and the fair value of the related assets as of the impairment date:

Fair Value Total

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These approaches are considered estimates of net operating income, capitalization rates, and/or comparable property sales.

Level 3 operating lease equipment is derived by calculating a median collateral value from a consistent group of third-party aircraft value publications.

Level 3 operating lease equipment were valued by calculating a median collateral value from a consistent group of third-party aircraft value publications.

The values provided by the third-party aircraft publications are derived from their knowledge of market trades and other market factors.

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The fair values and related carrying values of financial instruments that are not required to be remeasured at fair value on the Condensed Consolidated Statements of Financial Position were as follows:

March 31, 2025

June 30, 2025

Amount Total Fair

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The fair value of our debt that is traded in the secondary market is classified as Level 2 and is based on current market yields.

For our debt that is not traded in the secondary market, the fair value is classified as Level 2 and is based on our indicative borrowing cost derived from dealer

quotes or discounted cash flows.

For our debt that is not traded in the secondary market,

the fair value is classified as Level 2 and is based on our indicative borrowing cost derived from dealer quotes or discounted cash flows.

With regard to other financial instruments with off-balance sheet risk, it is not practicable to estimate the fair value of our indemnifications and financing commitments because the amount and timing of those arrangements are uncertain.

Items not included in the above disclosures include cash, restricted cash, time deposits and other deposits, commercial paper, money market funds, Accounts receivable, Unbilled receivables, Other current assets, Accounts payable and long-term payables.

The carrying values of those items, as reflected in the Condensed Consolidated Statements of Financial Position, approximate their fair value at March 31, 2025 and December 31, 2024.

The carrying values of those items, as reflected in the Condensed Consolidated Statements of Financial Position, approximate their fair value at June 30, 2025 and December 31, 2024.

The fair value of assets and liabilities whose carrying value approximates fair value is determined using Level 2 inputs, with the exception of cash (Level 1).

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Multiple legal actions, investigations and inquiries were initiated concerning the October 29, 2018 accident of Lion Air Flight 610 and the March 10, 2019 accident of Ethiopian Airlines Flight 302.

While many of these legal actions and investigations have been resolved, others are still pending, including a federal securities class action filed in federal district court in the Northern District of Illinois, and a number of civil lawsuits and claims brought by family members of those lost in the accidents.

While many of these legal actions and investigations have been resolved, others are still pending, including a number of civil lawsuits and claims brought by family members of those who died in the accidents.

In addition, a motion to certify a class of plaintiffs is pending before the U.S.

District Court for the Northern District of Illinois in a federal securities class action arising out of the accidents and the subsequent grounding of the 737 MAX.

Furthermore, on January 7, 2021, we entered into a Deferred Prosecution Agreement (DPA) with the U.S.

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On May 14, 2024, the Department notified us of its determination that we did not fulfill our obligations under the DPA and that the Department would not move to dismiss the case.

On July 24, 2024, we and the Department filed a proposed plea agreement with the U.S.

District Court for the Northern District of Texas (the Court) to resolve the Investigation.

Under the terms of the proposed agreement, Boeing agreed that it would plead guilty to the charge that was the basis for the DPA;

pay an additional fine of $ 244 ;

On May 29, 2025, Boeing and the Department reached agreement on the terms of a resolution in the form of a non-prosecution agreement, and the following day the Department filed a motion with the U.S.

District Court for the Northern District of Texas (the Court) to dismiss the criminal information.

Certain family members' representatives have opposed the dismissal, and a hearing to consider the Department's motion has been scheduled with the Court for September 3, 2025.

Under the terms of the non-prosecution agreement, Boeing will pay a fine of $ 244 ;

commit to invest at least $ 455 in compliance, quality and safety programs over a three-year period;

and agree to the appointment of an independent compliance monitor for three years .

On December 5, 2024, the Court rejected the proposed plea agreement, citing the proposed agreement’s provisions governing the monitor’s selection and supervision.

In light of the Court’s ruling, Boeing and the Department continue to be engaged in discussions regarding potential resolution of this matter, which is now scheduled to go to trial on June 23, 2025.

and retain an independent compliance consultant.

In addition, Boeing will provide $ 445 of additional compensation for the family members of those who died in the accidents.

We have established escrow accounts for the $ 244 fine and $ 445 compensation fund for family members which will be disbursed if the Court dismisses the criminal information.

The $ 445 of additional compensation was accrued for and expensed in the second quarter of 2025 while the $ 244 fine was accrued for and expensed in 2024.

Multiple legal actions were initiated as a result of the January 5, 2024 737-9 door plug accident.

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The primary profitability measurement used by our chief operating decision maker to review segment operating results is Segment operating earnings/(loss).

The following table reconciles segment Revenues to Segment operating earnings/(loss):

For the three months ended March 31, 2024

The following tables reconcile segment Revenues to Segment operating earnings/(loss):

For the six months ended June 30,

2025 2024 2025 2024 2025 2024

Revenues $ 19,021 $ 10,656 $ 12,915 $ 12,971 $ 10,344 $ 9,934

Research and development expense, net 1,092 1,073 420 494 59 67

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Segment operating earnings/(loss) ($ 1,094 ) ($ 1,858 ) $ 265 ($ 762 ) $ 1,992 $ 1,786

For the three months ended March 31, 2025

For the three months ended June 30,

2025 2024 2025 2024 2025 2024

Revenues $ 10,874 $ 6,003 $ 6,617 $ 6,021 $ 5,281 $ 4,889

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10,873 6,163 6,286 6,675 4,202 3,978

Segment operating earnings/(loss) ($ 537 ) $ 155 $ 943

Segment operating (loss)/earnings ($ 557 ) ($ 715 ) $ 110 ($ 913 ) $ 1,049 $ 870

(1) Primarily includes costs of products and services and general and administrative expenses.

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BCA revenues by customer location consisted of the following:

(Dollars in millions) Three months ended March 31

(Dollars in millions) Six months ended June 30 Three months ended June 30

2025 2024 2025 2024

Revenue from contracts with customers:

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Other non-U.S.

1,188 754 799 344

Total non-U.S.

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BDS revenues on contracts with customers, based on the customer's location, consisted of the following:

(Dollars in millions) Three months ended March 31

(Dollars in millions) Six months ended June 30 Three months ended June 30

2025 2024 2025 2024

Revenue from contracts with customers:

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customers (1)

2,755 3,008 1,390 1,502

Total segment revenue from contracts with customers $ 12,915 $ 12,971 $ 6,617 $ 6,021

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government (1)

92 % 90 % 92 % 89 %

(1) Includes revenues earned from foreign military sales through the U.S.

BGS revenues consisted of the following:

(Dollars in millions) Three months ended March 31

(Dollars in millions) Six months ended June 30 Three months ended June 30

2025 2024 2025 2024

Revenue from contracts with customers:

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government (1)

30 % 28 % 31 % 27 %

(1) Includes revenues earned from foreign military sales through the U.S.

Earnings in Equity Method Investments

During the three months ended March 31, 2025 and 2024, our share of (loss)/income from equity method investments was ($ 4 ) and $ 72 .

The loss in 2025 was primarily driven by investments held in Unallocated items, eliminations, and other.

During the six and three months ended June 30, 2025, our share of income from equity method investments was $ 30 and $ 34 , compared to $ 90 and $ 18 during the same periods in 2024.

The income in 2025 was primarily driven by investments held at our BDS segment and in Unallocated items, eliminations, and other.

The income in 2024 was primarily driven by investments held at our BDS segment.

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Backlog is converted into revenue, primarily based on the cost incurred or at delivery and acceptance of products, depending on the applicable revenue recognition model.

Our backlog at March 31, 2025 was $ 544,736 .

Our backlog at June 30, 2025 was $ 618,538 .

We expect approximately 21 % to be converted to revenue through 2026 and approximately 64 % through 2029, with the remainder thereafter.

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Components of Unallocated items, eliminations and other income/(expense) are shown in the following table.

Three months ended March 31

Six months ended June 30 Three months ended June 30

2025 2024 2025 2024

Share-based plans ($ 51 ) $ 53 ($ 21 ) $ 43

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($ 1,397 ) ($ 946 ) ($ 1,035 ) ($ 634 )

Eliminations and other unallocated items expense for the six and three months ended June 30, 2025 and 2024, includes earnings charges of $ 445 and $ 244 related to agreements with the U.S.

Department of Justice.

For additional discussion, see Note 18.

Pension and Other Postretirement Benefit Expense

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Components of FAS/CAS service cost adjustment are shown in the following table:

Three months ended March 31

Six months ended June 30 Three months ended June 30

2025 2024 2025 2024

Pension FAS/CAS service cost adjustment $ 390 $ 460 $ 197 $ 230

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Capital Expenditures

Three months ended March 31

Six months ended June 30 Three months ended June 30

2025 2024 2025 2024

Commercial Airplanes $ 243 $ 226 $ 137 $ 124

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Depreciation and Amortization

Three months ended March 31

Six months ended June 30 Three months ended June 30

2025 2024 2025 2024

Commercial Airplanes $ 212 $ 195 $ 111 $ 96

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Centrally Managed Assets (1)

465 440 223 221

Total $ 926 $ 883 $ 460 $ 441

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Depreciation and amortization for centrally managed assets are allocated to business segments based on usage and occupancy.

During the three months ended March 31, 2025, $ 169 was allocated to the primary business segments, of which $ 82 , $ 68 , and $ 19 was allocated to BCA, BDS and BGS, respectively.

During the three months ended March 31, 2024, $ 163 was allocated to the primary business segments, of which $ 80 , $ 65 , and $ 18 was allocated to BCA, BDS and BGS, respectively.

During the six months ended June 30, 2025, $ 351 was allocated to the primary business segments, of which $ 172 , $ 140 , and $ 39 was allocated to BCA, BDS and BGS, respectively.

During the six months ended June 30, 2024, $ 342 was allocated to the primary business segments, of which $ 166 , $ 138 , and $ 38 was allocated to BCA, BDS and BGS, respectively.

During the three months ended June 30, 2025, $ 182 was allocated to the primary business segments, of which $ 90 , $ 72 , and $ 20 was allocated to BCA, BDS and BGS, respectively.

During the three months ended June 30, 2024, $ 179 was allocated to the primary business segments, of which $ 86 , $ 73 , and $ 20 was allocated to BCA, BDS and BGS, respectively.

Note 20 – Subsequent Events

On April 22, 2025, we announced that we entered into an agreement with Thoma Bravo to sell portions of our BGS segment’s Digital Aviation Solutions business for $ 10.55 billion.

The sale will include Jeppesen, ForeFlight, AerData and OzRunways assets.

We will continue to provide commercial and defense airplane and fleet maintenance, diagnostics, and repair services.

This transaction will enable us to strengthen our capital structure and focus on our core operations.

We expect the transaction to close later in 2025 and result in a gain at closing.

The transaction is subject to regulatory approval and customary closing conditions.

On July 27, 2025 members of The International Association of Machinists and Aerospace Workers District 837 (Missouri) (IAM 837) rejected our contract offer and authorized a work stoppage as early as August 4, 2025.

Their contract expired on July 27, 2025.

If we are unable to reach agreement with IAM 837 members and avoid a work stoppage, our operations will be disrupted, particularly in our BDS and BGS Government businesses, and our financial position, results of operations and cash flows will be adversely impacted.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

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Results of Review of Interim Financial Information

We have reviewed the accompanying condensed consolidated statement of financial position of The Boeing Company and subsidiaries (the “Company”) as of March 31, 2025, the related condensed consolidated statements of operations, comprehensive income, equity, and cash flows for the three-month periods ended March 31, 2025 and 2024, and the related notes (collectively referred to as the "condensed consolidated interim financial information").

We have reviewed the accompanying condensed consolidated statement of financial position of The Boeing Company and subsidiaries (the “Company”) as of June 30, 2025, the related condensed consolidated statements of operations, comprehensive income, and equity for the three-month and six-month periods ended June 30, 2025 and 2024, and of cash flows for the six-month periods ended June 30, 2025 and 2024, and the related notes (collectively referred to as the "condensed consolidated interim financial information").

Based on our reviews, we are not aware of any material modifications that should be made to the accompanying condensed consolidated interim financial information for it to be in conformity with accounting principles generally accepted in the United States of America.

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Seattle, Washington

April 23, 2025

July 29, 2025

FORWARD-LOOKING STATEMENTS

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements